India is on the verge of concluding a landmark trade agreement with the European Union this month, an announcement expected to coincide with the visit of top EU leaders for India's 77th Republic Day celebrations. European Council President António Costa and European Commission President Ursula von der Leyen are scheduled to arrive in India from January 25 to 27, 2026, serving as Chief Guests and co-chairing the 16th India-EU Summit on January 27, where the trade pact is anticipated to be formalized. According to Indian Trade Secretary Rajesh Agrawal, India and the EU are 'very close' to finalizing the comprehensive Free Trade Agreement (FTA), with 20 out of 24 chapters already concluded and active, almost daily, negotiations underway for the remaining issues. This deal, if signed, would represent India's largest trade pact to date and is seen as a strategic move to deepen economic ties and diversify trade partners. While the agreement is expected to exclude the politically sensitive agriculture sector, it reportedly includes provisions for reducing tariffs on European wine and spirits. The urgency to finalize this deal has been highlighted by previous statements from German Chancellor Friedrich Merz, who suggested the possibility of a signing by the end of January. Bilateral trade between India and the EU reached €120 billion in 2024, positioning the bloc as India's largest trading partner. In contrast, trade discussions between India and the United States continue to face hurdles. While Commerce Secretary Agrawal indicated that India-US trade talks are ongoing and 'very near' a resolution, he did not provide a specific deadline. However, several reports suggest that talks on an India-US trade pact either collapsed last year due to communication breakdowns or remain stalled, particularly influenced by the US imposition of tariffs on Indian goods. This disparity in progress underscores India's current focus on cementing a robust economic partnership with the European Union.